Taiwanese firm to make study of RP oil, gas reserves

Taiwan’s Chinese Petroleum Corp. (CPC) will conduct a detailed study of the Philippines’ oil and gas reserves for a possible technical aid package, Energy Secretary Vincent S. Perez said.

Perez said CPC, which has expressed interest in exploring mineral resources in the Philippines, will coordinate with the Department of Energy (DOE) for the possible granting of a technical assistance package that will help improve the country’s information/data gathering method, particularly in the area of oil and gas development.

"At this point, they have no particular sites identified but we mentioned to them that we have significant seismic data. CPC and the DOE agreed that what

is needed is a technical aid and they could take a look at our data and analyze resource and seismic information," Perez said.

Perez said a team of CPC experts is expected to arrive soon to explore oil and gas potential in the Philippines.

He said the Taiwanese government has given the company a new mandate to invest heavily in oil and gas. "The Philippines is of strong interest to them," said Perez.

The Philippines has a huge potential gas and oil reserves but these have not yet been developed extensively.

Aside from this, it was learned that CPC has also expressed keen interest to take part in the construction of the country’s first naphtha cracker plant.

CPC was part of one of three consortia that have earlier signified interest to put up the cracker plant.

The Philippine National Oil Co. (PNOC) recently announced plans to revive its $1.2-billion cracker plant project.

PNOC, through its subsidiary PNOC-Petrochemical Development Corp. (PPDC), will develop the said plant which has an estimated annual production of 600,000 tons of ethylene and 310,000 tons of propylene.

In late 2003, Malaysian oil firm Petronas and British Petroleum Plc. pulled out their investments in Bataan Polyethylene Corp., prompting the PNOC to re-evaluate the naphtha project’s viability.

Recently though, a group of investors have entered into BPC, giving renewed interest and brighter prospect for the cracker facility.